George Osborne’s Help to Buy scheme is getting the wheels turning for London’s property market, according to housebuilder Barratt, with buyers snapping up properties in Lewisham and the Royal Docks.

Barratt, one of the UK’s largest housebuilders by market value, said consumer demand and mortgage supply were in their best state for five years thanks to the Government’s scheme, with around 400 people using Help to Buy to reserve properties since its launch on April 1.

The company said it had seen “particularly good momentum” in London, where private sales were up almost 50% in the 18 weeks to May 5 compared with the same period last year.

First-time buyers have flocked to areas such as Waterside park in the Royal Docks and Lewisham, with strong demand for two-bedroom flats around the £250,000 mark. Properties at each location have sold at a rate of three per week since the start of the year.

Chief executive Mark Clare said Help to Buy, which provides buyers with Government loans to help pay the deposit on new-build properties, has had a “strong start” and the company expects “significant” improvements in annual profits.

Properties in London’s more affluent areas have also been selling well. Barratt’s Fulham Riverside development sold 46 apartments in just 13 weeks, while £35 million worth have been sold at its Horseferry Road site in Westminster.

But the pace of demand means the developer fears it could face a “skills shortage” in the future.

Barratt said it plans to take on 600 graduates and apprentices over the next three years to head off any problems. Of this number, 100 will be put through Barratt’s Housebuilding foundation degree programme, delivered in partnership with Sheffield Hallam University.

The firm has also stepped up its land acquisition and development activities to meet the surging demand. Barratt has acquired £829.7 million worth of land during the financial year to date, including sites at Cannon Wharf and Blackfriars Road.

Across the UK, Barratt said net reservations per week per active site rose 18% after the government announced plans to help struggling house buyers on March 20, compared with the same period a year earlier. This contributed to an overall 9.7% increase in private reservations from January 1 to May 5.

The housebuilder reduced its net debt forecast to £100 million to the end of June 2013 and said it was making good progress towards achieving its target of zero net debt by June 2015.

Barratt confirmed it is planning a “conservative” dividend for the financial year ending 30 June 2013.